01 January 1998

TOTAL SALES VOLUME is set to soar as the Internet becomes part and parcel of everyday life - or so most marketing directors believe, according to The Electronic Commerce Report 1997 from KPMG Management Consulting. The report canvassed opinion from senior executives at 101 companies with annual turnover of £200 million upward. The majority of marketing directors do not expect the Internet to cannibalise existing sales sources but believe it will soon contribute to increased sales volume overall. Almost three-quarters of respondents expect the Net to add to existing markets and create new ones - not only as a direct-sell mechanism but also as an advertising and relationship tool. Only 9% are unconvinced it will achieve such an advantage by the millennium. The consensus is that Net-related transactions will account for 35% of all trade by 2002, with solely Internet-generated sales reaching 15%.